Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Council report shows Museum café behind forecast

Council report shows Museum café behind forecast

At a meeting of Rotorua District Council’s Operations & Monitoring Committee yesterday [15 May] the council called for a detailed review of the Museum Café operation within the next six months with a view to considering leasing the business to the private sector.

The decision followed presentation of a report on the financial performance of the Museum Café which shows it tracking behind forecast after nine months of the current financial year.

The report reveals the museum café was achieving a reasonable return on funds at 21%, but behind the 36% return estimated in the original business case prepared when the operation was purchased.

However the council says a number of measures are being developed to improve the café’s performance and bring it back on track.

The report, prepared by council finance manager Thomas Collé and chief financial officer (CFO) Dave Foster shows earnings (before interest, taxes, depreciation, and amortisation) for the nine months were $39,133 compared to a budget of $69,750.

The shortfall was primarily caused by wage costs being significantly ahead of budget, although that was slightly offset by a higher gross surplus from trading.

CFO Dave Foster said revenue was expected to be $10,000 under budget at the end of the financial year but the gross margin remained on track with the budget.

“At the current rate of earnings, it would take just under six years to achieve a full return on the funds the council invested to purchase the business, lease and chattels, compared to the business case estimate of approximately two and a quarter years.

“However a number of measures to improve the café’s overall financial performance are currently being reviewed, including staffing levels, opening hours, product wastage and pricing.

Mr Foster said getting the operation back on track and its returns up to expected levels would require only a marginal increase in sales, combined with a decrease in staffing costs.

“Under that scenario, the café could improve its annual return on funds to 36%, and this would provide a full return of funds invested within a three and a half year period.”

Mayor Steve Chadwick said the council was taking a wider look across all current operations and would be assessing whether they should continue to be involved in running businesses like the café.

“The progress report on the café’s current financial performance confirms what many of us thought at the time when the business was purchased on a decision made by the then-Executive Committee of Council. However we’ve moved on since then and I’ll ensure such important decisions will in the future be made by only the full council.”

[ENDS]


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Last Night’s Debate, And The Collins Accusation

Debating is a peculiar discipline in that what you say is less important than how you’re saying it. Looking poised, being articulate and staying on topic generally wins the day – and on that score, Labour leader David Cunliffe won what turned out to be a bruising encounter with Prime Minister John Key last night on TVNZ.

Cunliffe marshalled his points better, kept Key off balance and – more often than not – was in control of the general tenor of the contest. Labour supporters would have been heartened, and given some belated reassurance that maybe the change of leadership last year had been the right decision. More>>

 

Parliament Today:

Gordon Campbell: On Winston Peters' Latest Bout Of Immigrant Bashing

It is only one poll, but rather than cannibalising each other's vote, Colin Craig and Winston Peters do seem to be managing to find the room to co-exist... Few are questioning how Peters got to this happy place, and what it says about the mood of the electorate. More>>

ALSO:

More Immigration News: First People Trafficking Charges

The first people trafficking charges in New Zealand have been brought by Immigration New Zealand (INZ)... The defendants have been charged under the Crimes Act 1961 for arranging by deception the entry of 18 Indian nationals into New Zealand. More>>

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Regional
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news